Tag: NAFTA

President-elect Donald Trump's tough talk on trade appears to be paying off even before he formally takes office. In the days since the results of Tuesday's election, two-thirds of North American Free Trade Agreement trading bloc have already expressed interest in starting talks to renegotiate the landmark accord. During the campaign season, then candidate Trump made rewriting or withdrawing from NAFTA a pillar of his economic policy. Trump has minced no words in describing the agreement as a job killer and cause for wage stagnation in the U.S, as companies fled south seeking cheaper labor costs. Just this week, Canadian Prime Minister Justin Trudeau, a staunch proponent of trade, announced his willingness to head back to the negotiating table, acknowledging that over time trade deals must be given another look to…

Definition: NAFTA (the North American Free Trade Agreement) is a treaty between Canada, the United States, and Mexico that removes trade barriers. By eliminating trade barriers, NAFTA increases investment opportunities. The NAFTA agreement is 2,000 pages. It has eight sections and 22 chapters. That makes it the world’s largest free trade agreement as measured by Gross Domestic Product (GDP). Either the Trans-Pacific Partnership or the Transatlantic Trade and Investment Partnership will replace it. They must first be ratified. NAFTA is still controversial. First, the U.S. lost many manufacturing jobs to lower-cost Mexico. Second, workers in jobs that weren't outsourced had to accept lower wages. Third, Mexico's workers suffered exploitation in its maquiladora programs. For more, see NAFTA's disadvantages. Yet, U.S. grocery prices would be higher without tariff-free imports from Mexico. It's also clear that imports of oil from both Canada and Mexico prevent high gas prices. For updated…